Releases, a/k/a Exculpations, of Insiders Barred Under a Chapter 11 Plan

July 25, 2024

Releases, a/k/a Exculpations, of Insiders Barred Under a Chapter 11 Plan

Bankruptcy Judges Wiles in New York decided that insiders were not entitled to releases under Section 503(c), but not for the reasons contained in Purdue.

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Opinion Link

View Opinion

https://abi-opinions.s3.amazonaws.com/Mercon.pdf

Case Details

Case Citation

In re Mercon Coffee Corp., 23-11945 (Bankr. S.D.N.Y. July 19, 2024).

Case Name

In re Mercon Coffee Corp.

Case Type

Business

Court

3rd Circuit

New Jersey

Bankruptcy Tags

Plan Confirmation

Business Reorganization

Labor/Employment

Comments

Submitted by Richard Epling on July 25, 2024

I have understood an exculpation to hold harmless those persons who have negotiated a plan or otherwise engaged with the debtor in the resolution of the case. Nothing in Purdue suggests that process should not continue. The parties who engage in negotiating a plan and their professionals should still be entitled to be exculpated from actions taken in the case upon plan confirmation.